The yen traded 0.5 percent from a seven-year low amid speculation Japanese Prime Minister Shinzo Abe will call a general election to shore up support and postpone a planned sales-tax increase.
The yen reached 116.10 per dollar this week, the least since October 2007, after a ruling Liberal Democratic Party lawmaker said preparations for a snap election have begun. It rebounded yesterday after Finance Minister Taro Aso downplayed the possibility of a delay in raising the levy. The euro held a loss before German data forecast to confirm consumer prices fell last month. The Aussie traded near the highest in a week before Chinese data on retail sales and industrial production.
“The market has taken the idea of a delay in raising the sales tax as a positive, so stocks have been bought and dollar-yen has risen,” said Masato Yanagiya, head of foreign exchange and money trading at Sumitomo Mitsui Banking Corp. in New York. “Once we get an actual announcement, there’s a good chance we’ll see a further reaction in the market.”
The yen traded at 115.52 per dollar as of 11:10 a.m. in Tokyo from 115.49 yesterday, when it rose 0.3 percent. It slid 0.1 percent to 143.80 per euro. The shared currency was at $1.2448, after declining 0.3 percent in New York to $1.2438.
Australia’s dollar traded at 87.31 U.S. cents from 87.19 yesterday, when it touched 87.45, the most since Nov. 5. New Zealand’s dollar fetched 78.83 U.S. cents after gaining 1.7 percent in the last two days to 78.79.
Source: Bloomberg (13 Nov 2014)
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